Interesting recent interview with Greenspan. Some parts:
But the fact the fiat currency expansion got very tarnished with -- you know, in 1775, we printed a whole bushel full of continentals. And one of the fascinating things about that period is the fact, for the first year or two, there was very little evidence that that had any effect on prices, meaning that that paper currency circulated with the same value as specie.
And there is an extraordinary -- there's an extraordinary lag which exists between actions of that type and consequences. Now, eventually the continental was not worth a continental. But it took a long while. And I think that we're looking at very similar things now. This, again, is a human propensity.
The Continental currency had hyperinflation. It is interesting that Greenspan says, "I think that we're looking at very similar things now". He is directly talking about the long delay between printing money and high inflation, but it sure seems like he is hinting at high inflation this time too.
Greenspan also thinks gold is a good investment:
Tett: Do you think that gold is currently a good investment?
Greenspan: Yes... Remember what we're looking at. Gold is a currency. It is still, by all evidence, a premier currency. No fiat currency, including the dollar, can match it.